© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 151 C HAPTER 18 Introduction to Systems Development.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart2 of 151 INTRODUCTION Questions to be addressed in this chapter include: –What are the phases in the systems development life cycle? –Who are the individuals involved in systems development? –What techniques are used to plan the development of a system? –How do you determine whether a particular system is feasible? –How do people respond to systems changes, and how can dysfunctional behavior be minimized?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart3 of 151 INTRODUCTION As the environment, technology, and competition change, an information system must continually undergo changes These changes range from minor adjustments to major overhauls. Occasionally the old system is scrapped and replaced.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart4 of 151 INTRODUCTION Companies change their systems for a variety of reasons: –To respond to changes in user needs or business needs –To take advantage of or respond to technology changes –To accommodate improvements in their business process –To gain a competitive advantage and/or lower costs –To increase productivity –To accommodate growth –To accommodate downsizing or distribute decision making –To replace a system that is aged and unstable

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart5 of 151 INTRODUCTION Developing quality, error-free software is difficult, expensive, and time-consuming. Projects tend to deliver less than expected and consume more time and money. A KPMG survey found that 35% of all major information systems projects were classified as runaways— hopelessly incomplete and over budget. –Major cause of runaways: Skimping on systems development processes. Omitting basic systems development steps becomes tempting but may lead to disaster as developers create well-structured systems that fail to meet user needs or solve business problems.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart6 of 151 INTRODUCTION This chapter discusses five topics: –Systems development life cycle –Planning activities during the systems development life cycle –Feasibility analysis –Behavioral aspects of change –Systems analysis

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart7 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE Whether systems changes are major or minor, most companies go through a systems development life cycle. In this section, we discuss the steps in the cycle and the people involved.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart8 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE The five stages in the systems development life cycle are: –Systems analysis –Conceptual Design –Physical Design –Implementation and Conversion –Operation and Maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart10 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: –Initial investigation  Involves gathering the information needed to buy or develop a new system and determining whether it is a priority.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart11 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: –Initial investigation –Systems survey  If the system is a priority, survey the existing system to define the nature and scope of the project and identify the strengths and weaknesses of the system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart12 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: –Initial investigation –Systems survey –Feasibility study  Involves an in-depth study of the proposed system to determine whether it’s feasible.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart13 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: –Initial investigation –Systems survey –Feasibility study –Determination of information needs and system requirements  Involves finding out and documenting what users and management need.  This is the most important aspect of systems analysis.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart14 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE As organizations grow and change, they may need more or better information. Systems analysis is the first step. It includes: –Initial investigation –Systems survey –Feasibility study –Determination of information needs and system requirements –Delivery of systems requirements  Involves preparation of a report summarizing the systems analysis work.  This report is submitted to the information systems steering committee.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart16 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE In the conceptual design phase, the company decides how to meet user needs. Tasks in this phase include : –Identify and evaluate design alternatives  Possibilities include:  Buying software  Developing in-house  Outsourcing

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart17 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE In the conceptual design phase, the company decides how to meet user needs. Tasks in this phase include : –Identify and evaluate design alternatives –Develop design specifications  Involves writing up details of what the system is to accomplish and how it is to be controlled and developed.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart18 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE In the conceptual design phase, the company decides how to meet user needs. Tasks in this phase include : –Identify and evaluate design alternatives –Develop design specifications –Deliver conceptual design requirements  These requirements will be forwarded to the information systems steering committee.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart20 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE In the physical design phase, the broad, user- oriented requirements of the conceptual design are translated into detailed specifications that can be used by programmers to code the programs. Tasks include: –Design outputs, database, and inputs –Develop programs –Develop procedures –Design controls –Deliver developed system Goes to information systems steering committee

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart22 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE This is the capstone phase during which everything comes together. Tasks include: –Develop an implementation and conversion plan Needed because of the complexity and importance of this phase –Install any new hardware and software –Train personnel New employees may need to be hired and trained or existing employees relocated. –Test the system and make any needed modifications. –Complete the documentation. –Convert from the old to the new system. –Deliver operational system. Send the final report to the IS steering committee.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart24 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE Once the system is up and running, operations and monitoring continue. Tasks include: –Fine-tune and do post-implementation review. –Operate the system. –Periodically review and modify the system. –Do ongoing maintenance. –Deliver improved system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart25 of 151 SYSTEMS DEVELOPMENT LIFE CYCLE Eventually a major modification or system replacement is necessary, and the systems development life cycle (SDLC) will start over. In addition to the preceding five phases, three activities are performed throughout the life cycle: –Planning –Managing behavioral reactions to change –Assessing ongoing feasibility These three activities will be discussed in this chapter.  Additionally, the first phase in the SDLC, systems analysis, will be discussed in more detail.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart26 of 151 THE PLAYERS  Many people are involved in developing and successfully implementing an AIS, including:  Top management  Accountants  The information systems steering committee  The project development team  Systems analysts  Computer programmers  External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart27 of 151 THE PLAYERS  Many people are involved in developing and successfully implement an AIS, including:  Top management  Accountants  The information systems steering committee  The project development team  Systems analysts  Computer programmers  External players

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart28 of 151 THE PLAYERS Top management’s role in systems development is to: –Provide support and encouragement and a clear signal that user involvement is important. –Help align the systems with corporate strategies. –Establish system goals and objectives. –Review IS department performance and leadership. –Establish policies for project selection and organizational structure. –Participate in important systems decisions.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart29 of 151 THE PLAYERS User management needs to: –Determine information requirements for departmental projects. –Assist systems analysts with project cost-benefit estimates. –Assign key staff members to development projects. –Allocate funds.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart31 of 151 THE PLAYERS Accountants also play an important role in systems development: –As AIS users, they must determine their information needs and systems requirements and communicate them to system developers. –As members of project development teams or steering committees, they help management in the development process. –They are also active in: Designing system controls and monitoring and testing these controls. Ensuring the system is easy to audit. –Controls and “auditability” need to be built in early to minimize costs and inefficiencies later.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart33 of 151 THE PLAYERS The information systems steering committee is an executive-level committee whose duty is to plan and oversee the IS function. –Consists of high level management, such as: Controller IS Manager User department managers –Sets policies to govern the AIS and assure top- management participation, guidance, and control. –Attempts to encourage goal congruence and reduce goal conflict.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart35 of 151 THE PLAYERS The project development team includes systems specialists, managers, accountants, auditors, and users whose responsibility is to guide development Their job: –Plan each project. –Monitor to ensure timely and cost-effective completion. –Ensure the human element is considered. –Communicate project status to top management and steering committee. –Communicate and meet with users to: Consider ideas Discuss progress Eliminate surprises –The team approach produces more effective results and better user acceptance.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart37 of 151 THE PLAYERS Systems analysts study existing systems, design new ones, and prepare specifications that are used by programmers. –They interact with technical personnel and users to bridge the gap. –They are responsible for ensuring the system meets user needs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart39 of 151 THE PLAYERS Computer programmers write the computer programs, using the specs developed by the systems analysts. They also modify and maintaining existing programs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart41 of 151 THE PLAYERS External players include: –Customers –Vendors –Auditors –Governmental entities Their needs must also be met in systems development.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart42 of 151 PLANNING SYSTEMS DEVELOPMENT Several activities must be performed at various times throughout the SDLC. One of these activities is planning. The organization should have plans for: –The long range –Each systems development project –Each phase of each systems development project We’ll discuss these plans and a number of techniques to develop them.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart43 of 151 PLANNING SYSTEMS DEVELOPMENT We’ve all experienced the disasters that occur when we fail to plan. Suppose you bought a personal computer on impulse without thinking about what you wanted to do with it. When you got it home, you realized it wasn’t compatible with your existing printer and scanner. Furthermore, it wasn’t equipped for broadband internet access and you had been hoping to switch to broadband. By the time you spend the money and buy the parts to equip the computer to do what you want it to do, you find that you could have bought a leading-edge computer for less money.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart44 of 151 PLANNING SYSTEMS DEVELOPMENT Systems development planning is an important step for the following key reasons: –Consistency with the organization’s strategic plan. –Efficiency achieved through coordination of the subsystems. –Cutting edge technology and techniques. –Lower costs due to lack of duplication, wasted effort, time overruns, and cost overruns. –Adaptability for future changes.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart45 of 151 PLANNING SYSTEMS DEVELOPMENT  When a system is poorly planned, a company must often return to a prior phase and correct errors and design flaws.  These returns are costly and result in delays, frustration, and low morale.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart46 of 151 PLANNING SYSTEMS DEVELOPMENT  Two types of systems development plans are needed: -Individual project plans developed by the project teams. -A master plan developed by the IS steering committee.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart48 of 151 PLANNING SYSTEMS DEVELOPMENT Individual project plans contain: –A cost-benefit analysis. –Developmental and operational requirements, including: Human resources Hardware Software Financial resources –A schedule of activities to develop and operate the new application

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart50 of 151 PLANNING SYSTEMS DEVELOPMENT A master plan specifies: –What the system will consist of –How it will be developed –Who will develop it –How needed resources will be acquired –Where the AIS is headed It also provides: –Status of projects in process –Prioritization of planned projects and criteria for establishing priorities –Timetables for development

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart51 of 151 PLANNING SYSTEMS DEVELOPMENT Projects with highest priority are first to be developed. –These decisions are made by top management. Planning horizon: –About a 3-year horizon –With updates at least 2-3 times/year—even more frequently in some companies. The CIO should determine: –How soon technologies will be in wide use –Whether the company should adopt late or early –What business opportunities might arise from new technologies

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart52 of 151 PLANNING SYSTEMS DEVELOPMENT Planning Techniques –Two techniques for scheduling and monitoring systems development activities are: Program Evaluation and Review Technique (PERT) Gantt Charts

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart53 of 151 PLANNING SYSTEMS DEVELOPMENT Planning Techniques –Two techniques for scheduling and monitor systems development activities are: Program Evaluation and Review Technique (PERT) Gantt Charts

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart54 of 151 PLANNING SYSTEMS DEVELOPMENT A PERT diagram requires that all activities in a project be identified along with the activities that precede and follow them. These activities are used to draw a PERT diagram, which consists of a network of: –Arrows—representing activities that require time and resources. –Nodes—representing completion and initiation of activities.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart55 of 151 PLANNING SYSTEMS DEVELOPMENT The critical path in a PERT diagram is the path requiring the greatest amount of time. If an activity on the critical path is delayed, the whole project is delayed. Resources may be shifted to the critical path to reduce the delay.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart56 of 151 Design Birdhouse (2) (Bill) Buy Wood & Nails (1) (Bill) Buy Paint (1) (Sara) Build Base (2) (Bill) Build Roof (1) (Bill) Nail Together (2) (Bill) Paint & Decorate (3) (Sara) Sell (2) (Sara) SAMPLE PERT CHART –For building and selling a birdhouse. –Each block contains a task and a time estimate (may include best time, worst time, and average time) –May indicate who will be responsible for the task.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart57 of 151 PLANNING SYSTEMS DEVELOPMENT Planning Techniques –Two techniques for scheduling and monitor systems development activities are: Program Evaluation and Review Technique (PERT) Gantt Charts

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart58 of 151 PLANNING SYSTEMS DEVELOPMENT A Gantt chart is a bar chart with project activities on the left and time across the top. For each activity, a bar of expected time is drawn. As activities are completed, the bar is filled in. The Gantt chart makes it easy to eyeball the chart and understand the current status of a project. But the chart does not show the relationship between activities like the PERT chart does.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart60 of 151 FEASIBILITY ANALYSIS During the systems analysis phase, a feasibility study (aka, a business case) is prepared and is updated during the remaining steps in the SDLC. The extent of the feasibility study depends on the size and nature of the system. Feasibility team should include: –Management –Accountants skilled in controls and auditing –Systems personnel –Users

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart61 of 151 FEASIBILITY ANALYSIS The feasibility study and its updates are used by the steering committee as the project proceeds to decide whether to: –Terminate the project –Proceed –Proceed if specific problems are resolved

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart62 of 151 FEASIBILITY ANALYSIS Five aspects need to be considered during a feasibility study: –Technical feasibility Is the technology there to do it? –Operational feasibility Do we have people who can do it, and will it get used? –Legal feasibility Does it comply with legal, regulatory, and contractual obligations? –Scheduling feasibility Can it be done in time? –Economic feasibility Will the benefits exceed the costs?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart63 of 151 FEASIBILITY ANALYSIS Calculating Economic Feasibility Costs and Benefits –Economic feasibility is probably the most important and frequently analyzed aspect. –This examination requires a careful investigation of costs and benefits. –It typically uses a capital budgeting model that considers: Cost savings and other benefits Initial outlay costs Operating costs Other costs

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart64 of 151 FEASIBILITY ANALYSIS When possible, benefits and costs should be estimated and included even if they are not easily quantifiable. If some costs and benefits cannot be accurately estimated, they should at least be listed, along with the likelihood of their occurrence and their expected impact.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart65 of 151 FEASIBILITY ANALYSIS Benefits might include: –Cost savings. –Improved customer service, productivity, decision making, or data processing. –Better management control. –Increased job satisfaction and employee morale.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart66 of 151 FEASIBILITY ANALYSIS Costs might include: –Equipment costs Initial outlay plus ongoing operating costs –Software costs Costs of acquiring, maintaining, supporting, and operating –Human resource costs Salaries, as well as costs of hiring, training, and relocating staff –Site preparation costs –Installation and conversion costs –Supplies –Overhead –Financial charges The primary operating cost is maintaining the system. Makes up 65-75% of the organization’s system efforts

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart67 of 151 FEASIBILITY ANALYSIS Capital Budgeting –Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. –There are three commonly used techniques Payback period Calculates the number of years before the new savings from the project equal the initial cost of the investment. Select projects with shorter payback periods.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart68 of 151 FEASIBILITY ANALYSIS Capital Budgeting –Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. –There are three commonly used techniques Payback period Net present value (NPV) Calculates and sums the discounted future cash flows of the costs and benefits. Select projects with higher positive NPV.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart69 of 151 FEASIBILITY ANALYSIS Capital Budgeting –Most organizations use a capital budgeting return on investment technique to evaluate the economic merits of different system alternatives. –There are three commonly used techniques Payback period Net present value (NPV) Internal rate of return (IRR) Calculates the effective interest rate that would result in a net present value of zero for the project. Select projects with higher IRRs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart70 of 151 BEHAVIORAL ASPECTS OF CHANGE The best system will fail without the support of the people it serves. So the behavioral aspects of change are crucial. You need to be aware of and sensitive to the types of behavioral problems that can result from change.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart71 of 151 BEHAVIORAL ASPECTS OF CHANGE Why Behavioral Problems Occur –Employees will tend to view change as good if they believe it will affect them positively and vice versa.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart72 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background Employees are more likely to accept change if they are: –Young; –Highly educated; or –Comfortable with technology.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart73 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced The rationale used to sell the system may need to vary with the job responsibilities of the employees involved.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart74 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart75 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes –Top management support

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart76 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes –Top management support –Communication

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart77 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes –Top management support –Communication –Biases and natural resistance to change

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart78 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes –Top management support –Communication –Biases and natural resistance to change –Disruptive nature of the change process Disturbances often create negative feelings.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart79 of 151 BEHAVIORAL ASPECTS OF CHANGE To minimize adverse behavioral reactions, it helps to understand why resistance occurs: –Personal characteristics and background –Manner in which change is introduced –Experience with prior changes –Top management support –Communication –Biases and natural resistance to change –Disruptive nature of the change process –Fear May include fear of: –The unknown –Failure –Technology –Losing respect or status –Losing their jobs

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart80 of 151 BEHAVIORAL ASPECTS OF CHANGE How People Resist AIS Changes –Resistance to change often takes one of three forms: Aggression Behavior intended to destroy, cripple, or weaken the system’s effectiveness. Examples: Increased error rates, disruptions, or deliberate sabotage.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart81 of 151 BEHAVIORAL ASPECTS OF CHANGE How People Resist AIS Changes –Resistance to change often takes one of three forms: Aggression Projection Blaming the new system for any and every unpleasant occurrence, i.e., the system becomes a scapegoat. To preserve the integrity of the system, these criticisms must be controlled or answered.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart82 of 151 BEHAVIORAL ASPECTS OF CHANGE How People Resist AIS Changes –Resistance to change often takes one of three forms: Aggression Projection Avoidance “If I don’t use this thing, maybe it will go away!”

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart83 of 151 BEHAVIORAL ASPECTS OF CHANGE Reactions to change can be improved by observing the following guidelines: –Meet user’s needs with respect to the form, content, and volume of system output. –Keep communication lines open. Managers and users should be fully informed about: What changes are being made Why How it will benefit them Who to contact with questions

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart84 of 151 BEHAVIORAL ASPECTS OF CHANGE –Maintain a safe and open atmosphere. If employees become hostile, it’s an uphill battle you probably won’t win. –Obtain management support. –Allay fears. To the extent possible, reassure employees that no major job losses or responsibility shifts will occur. If employees are terminated, severance pay and outplacement services should be provided.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart85 of 151 BEHAVIORAL ASPECTS OF CHANGE –Solicit user participation. It is ego enhancing, challenging, and intrinsically satisfying. Users who participate will be more committed to using the system. –Provide honest feedback. Explain which suggestions are and are not being used and why. –Make sure users understand the system. Don’t underestimate training needs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart86 of 151 BEHAVIORAL ASPECTS OF CHANGE –Humanize the system. Employees shouldn’t feel the computer is controlling them or has usurped their positions. –Describe new challenges and opportunities. The system can provide greater job satisfaction and increased opportunities. –Reexamine performance evaluation. Are performance standards and criteria realistic in light of the change? –Test the system’s integrity. It’ important to minimize bad impressions

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart87 of 151 BEHAVIORAL ASPECTS OF CHANGE –Avoid emotionalism. Emotional issues should be allowed to cool, handled in a non-confrontational manner, or sidestepped. –Present the system in the proper context. Address the concerns of the people to whom you’re speaking, not the concerns of management or developers. –Control the user’s expectations Don’t oversell, and be realistic. –Keep the system simple Avoid complex systems that cause radical changes.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart88 of 151 BEHAVIORAL ASPECTS OF CHANGE  Ignoring the preceding steps can leave to behavior issues that are difficult or impossible to reverse.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart89 of 151 SYSTEMS ANALYSIS When a new or improved system is needed, a written request for systems development is prepared. That request describes: –The current system’s problems –The reasons for the proposed changes –The goals and objectives of a proposed system –The anticipated benefits and costs

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart90 of 151 SYSTEMS ANALYSIS The project development team will conduct the systems analysis in five steps: –Initial investigation –Systems survey –Feasibility study –Information needs and systems requirements –Systems analysis report

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart91 of 151 SYSTEMS ANALYSIS The project development team will conduct the systems analysis in five steps –Initial investigation –Systems survey –Feasibility study –Information needs and systems requirements –Systems analysis report

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart92 of 151 SYSTEMS ANALYSIS The initial investigation is conducted to: –Gain a clear picture of the problem or need. Sometimes what is thought to be the cause of the problem is not the real source.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart93 of 151 SYSTEMS ANALYSIS The initial investigation is conducted to: –Gain a clear picture of the problem or need. –Determine the viability of the project and expected costs and payoffs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart94 of 151 SYSTEMS ANALYSIS The initial investigation is conducted to: –Gain a clear picture of the problem or need. –Determine the viability of the project and expected costs and payoffs. –Evaluate the scope and nature of the new AIS. A new AIS is useful when problems are a result of: –Lack of information –Inaccessibility of data –Inefficient data processing A new AIS will not answer problems such as: –A manager who has too many subordinates –A manager who lacks organizational skills –Failure to enforce existing problems

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart95 of 151 SYSTEMS ANALYSIS The initial investigation is conducted to: –Gain a clear picture of the problem or need. –Determine the viability of the project and expected costs and payoffs. –Evaluate the scope and nature of the new AIS. –Recommend whether to proceed. Either: –Initiate the project as proposed. –Modify it. –Abandon it.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart96 of 151 SYSTEMS ANALYSIS If the project is approved: –A proposal to conduct systems analysis is prepared. –The project is assigned a priority and added to the master plan. –The development team begins a survey of the existing AIS. –The proposal will be modified as more information becomes available.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart98 of 151 SYSTEMS ANALYSIS A systems survey involves an extensive study of the current AIS which could take weeks or months. Objectives are: –Gain a thorough understanding of: Company operations, policies, and procedures Data and information flow AIS strengths and weaknesses Available hardware, software, and personnel –Make preliminary assessments of current and future processing needs, and determine extent and nature of needed changes. –Develop working relationships with users and build support. –Collect data that identify user needs, conduct a feasibility analysis, and make recommendations to management.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart99 of 151 SYSTEMS ANALYSIS Data can be gathered from: –Employees. –Documentation such as organization charts and procedure manuals. –External sources such as: Consultants Customers Suppliers Industry associations Government agencies

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart100 of 151 SYSTEMS ANALYSIS Four common methods of gathering data are: –Interviews –Questionnaires –Observation –System Documentation

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart102 of 151 SYSTEMS ANALYSIS Advantages of interviews: –Can answer “why” questions –Can allow for follow-up and clarification –Provides opportunity to build positive relationships with interviewees and support for new system Disadvantages of interviews: –Time-consuming –Expensive –Personal biases or self-interest may produce inaccurate information

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart103 of 151 SYSTEMS ANALYSIS When you do interviews: –Make an appointment. –Explain the purpose ahead of time. –Indicate the amount of time needed. –Be on time. –Be familiar with the interviewee’s responsibilities. –Make notes on points to cover. –Put the interviewee at ease and let him/her do the talking. –Pay attention to nonverbal cues. –Take notes and augment them with impressions after the interview. –Request permission to tape critical interviews.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart105 of 151 SYSTEMS ANALYSIS Questionnaires can be used when: –The amount of information to be gathered is small and well defined. –The information is to be obtained from many people or from those who are remotely located. –The information is intended to verify data from other sources.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart106 of 151 SYSTEMS ANALYSIS Advantages of questionnaires: –Can be anonymous. –Not time-consuming to complete. –Inexpensive. –Allows the subject time to think about responses. Disadvantages of questionnaires: –Does not allow in-depth questions or answers. –Does not allow follow-up or clarification. –Does not build relationships. –Difficult to develop. –May be ignored or completed superficially.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart108 of 151 SYSTEMS ANALYSIS Advantages of observations: –Can verify how the system actually works rather than how it should work. –Results in greater understanding of systems. Disadvantages of observations: –Time-consuming. –Expensive. –Difficult to interpret. –People may alter behavior while being observed.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart109 of 151 SYSTEMS ANALYSIS When you do observations: –Identify what is to be observed and estimate the time required. –Obtain permission. –Explain what will be done and why. –Don’t make value judgments. –Take notes and document impressions ASAP.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart111 of 151 SYSTEMS ANALYSIS Advantages of systems documentation: –Describes how the system should work. –Written form facilitates review and analysis. Disadvantages of systems documentation: –Time consuming. –May be elusive. When you examine systems documentation: –Keep in mind that the system doesn’t always work as it should per the documentation. –If documentation is unavailable, it may be worthwhile to develop it.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart112 of 151 SYSTEMS ANALYSIS Once the data is gathered, document findings and model the existing system. –Documentation consists of: Questionnaire copies Interview notes Memos

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart113 of 151 SYSTEMS ANALYSIS Another form of documentation is a system model: –Physical models illustrate how a system functions by describing: Flow of documents. Computer processes performed and the people doing them. Equipment used. Any other physical elements. –Logical models illustrate what is being done regardless of how the flow is accomplished.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart114 of 151 SYSTEMS ANALYSIS When documentation is complete, analyze the existing system: –Evaluate the AIS’s strengths and weaknesses to develop ideas for designing and structuring the new AIS. Try to retain strengths. Correct weaknesses. –Sometimes, you need revolutionary, rather than evolutionary change. Called re-engineering.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart115 of 151 SYSTEMS ANALYSIS At the end of this phase, prepare systems survey report: –Outlines and documents the data gathered. –Provides recommendations that result from the systems survey.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart117 of 151 SYSTEMS ANALYSIS After the systems survey, a more thorough feasibility analysis is conducted. This analysis is updated regularly as the project proceeds and costs and benefits become clearer.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart119 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes Describes what is to be done and by whom.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart120 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements Describes name, size, format, source, and significance of necessary data elements.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart121 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure A preliminary structure showing how the data elements will be organized into logical records.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart122 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure -Outputs Layouts of system outputs and a description of their purpose, frequency, and distribution.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart123 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure -Outputs -Inputs A copy of system inputs and a description of their contents, source, and who is responsible for them.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart124 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure -Outputs -Inputs -Constraints A description of deadlines, schedules, security requirements, staffing limitations, and legal requirements.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart125 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure -Outputs -Inputs -Constraints -Controls Controls that are needed to ensure accuracy and reliability.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart126 of 151 SYSTEMS ANALYSIS  Once a project clears the feasibility hurdle, the company identifies the information needs of AIS users and documents systems processes, including: -Processes -Data elements -Data structure -Outputs -Inputs -Documentation constraints -Controls -Reorganizations Changes in staffing, job functions, etc., that would be necessary.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart127 of 151 SYSTEMS ANALYSIS Issues: –There is much to be specified, even for a simple AIS. –It may be difficult to get employees to accurately articulate their needs. –Errors are best caught early, as the cost to correct them increases significantly the farther you are into the project.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart128 of 151 SYSTEMS ANALYSIS Systems Objectives and Constraints –Many entities take a systems approach to determining information needs and systems requirements. –Problems and alternatives are viewed from the standpoint of the entire organization—as opposed to a single department.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart129 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness Able to help users make decisions.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart130 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy Benefits exceed costs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart131 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability Data is processed accurately and reliably.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart132 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability You can access it when you need it.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart133 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness More critical information is provided first.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart134 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service Efficient and courteous.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart135 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity Can handle peak periods.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart136 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity -Ease of use

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart137 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity -Ease of use -Flexibility Can accommodate changes.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart138 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity -Ease of use -Flexibility -Tractability Easily understood. Facilitates problem solving and future development.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart139 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity -Ease of use -Flexibility -Tractability -Auditability

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart140 of 151 SYSTEMS ANALYSIS Systems objectives must be identified, so analysts and users can focus on those elements most vital to success of the AIS. These may include: -Usefulness -Economy -Reliability -Availability -Timeliness -Customer service -Capacity -Ease of use -Flexibility -Tractability -Auditability -Security Available only to authorized users.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart141 of 151 SYSTEMS ANALYSIS There are often trade-offs between objectives. Organizational constraints make it impossible to develop all parts of an AIS simultaneously. –You divide it into modules that are analyzed, developed, and installed independently. –When changes are made, only the affected modules need to be changed. –The modules should be properly integrated into a workable system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart142 of 151 SYSTEMS ANALYSIS Success often depends on the project team’s ability to cope with organizational constraints, including: –Requirements of governmental agencies. –Managerial policies and guidelines. –Lack of sufficient, qualified staff. –Capabilities and attitudes of users. –Available technology. –Limited financial resources.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart143 of 151 SYSTEMS ANALYSIS Strategies for Determining Requirements: –One or more of the following four strategies are used to determine AIS requirements: Ask users what they need This is the simplest and fastest strategy. But many people don’t realize or understand their true needs. It’s sometimes better to ask them what decisions they make and what processes they are involved in. Users also need to think beyond their current information needs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart144 of 151 SYSTEMS ANALYSIS Strategies for Determining Requirements: –One or more of the following four strategies are used to determine AIS requirements: Ask users what they need Analyze existing systems  Internal and external systems should be analyzed to avoid reinventing the wheel.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart145 of 151 SYSTEMS ANALYSIS Strategies for Determining Requirements: –One or more of the following four strategies are used to determine AIS requirements: Ask users what they need Analyze existing systems Examine existing system use Certain modules: –May not be used as intended –May be augmented by manual tasks –May be avoided altogether Helps determine whether the system really needs to be simply modified rather than replaced.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart146 of 151 SYSTEMS ANALYSIS Strategies for Determining Requirements: –One or more of the following four strategies are used to determine AIS requirements: Ask users what they need Analyze existing systems Examine existing system use Create a prototype Entails roughing out a system for users to critique. When they see something on a screen, it’s easier to identify what they like and don’t like. Goes through iterations of improving and reviewing with users until users agree on their needs.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart147 of 151 SYSTEMS ANALYSIS Documentation and Approval of User Requirements: –Detailed requirements for the new AIS should be created and documented. How to produce the required features is determined during the design phases of the SDLC. The requirements list should be supported by sample input and output forms and charts that make it easier to conceptualize. A nontechnical summary is often prepared for management.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart148 of 151 SYSTEMS ANALYSIS Once user requirements have been determined and documented, the project team: –Meets with users. –Explains the requirements. –Obtains their agreement and approval. When an agreement is reached, user management should sign off on the requirements.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart150 of 151 SYSTEMS ANALYSIS The last step in systems analysis is the systems analysis report. –Summarizes and documents the activities. –Serves as a repository of data from which designers can draw. –Outlines: Goals and objectives of the new system. Scope of the project. How the new system fits into the company’s master plan. User processing requirements and information needs. Feasibility analysis. Recommendations for the new system.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart151 of 151 SYSTEMS ANALYSIS A go-no-go decision is usually made three times during systems analysis: –During the initial investigation to determine whether to go ahead with a systems survey. –At the end of the feasibility study to determine whether to proceed with the information requirements step. –At the completion of the analysis phase to decide whether to proceed to the next phase (conceptual design).

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart152 of 151 SYSTEMS ANALYSIS When systems analysis is completed, the project can move on to: –Conceptual design phase –Physical design phase –Implementation and conversion –Operation and maintenance

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart153 of 151 SUMMARY You’ve learned about the five phases in the systems development life cycle, with a particular emphasis on systems analysis. You’ve learned who the players are in the systems development process. You’ve learned about various techniques that are used to plan the development of a system. You’ve reviewed some techniques for determining system feasibility. You’ve learned about behavioral responses to systems changes and how dysfunctional behavior can be minimized.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 151 C HAPTER 18 Introduction to Systems Development.

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© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 151 C HAPTER 18 Introduction to Systems Development.

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Presentation on theme: "© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 151 C HAPTER 18 Introduction to Systems Development."— Presentation transcript:

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